The development of battery mineral value chains (BMVC) across Africa remains limited beyond the mining stage. However, recent investments and high-level pledges, particularly from the US and EU, indicate a growing interest in fostering BMVC development. One country that has made significant strides in building an integrated battery and electric vehicle (EV) value chain is Morocco.
Morocco has capitalised on its existing resource base and industrial capabilities while taking advantage of its proximity to the EU and the US markets. This approach aligns with its broader industrial strategies, including the Industrial Acceleration Plan for the automotive sector and the Morocco Mines Plan. In less than 15 years, Morocco has evolved into a major hub for automotive assembly, attracting significant investments from major French car manufacturers such as Renault and Peugeot. By 2023, the country’s production figures reached over 500,000 vehicles annually, bringing it close to the levels of South Africa, a more established automotive player. Additionally, Morocco has ventured into EV manufacturing, producing around 50,000 electric vehicles each year, a figure driven by the looming EU ban on internal combustion engine vehicles by 2035.
The upstream portion of Morocco’s value chain is marked by substantial investments in battery-related materials, many of them from Chinese firms. These investments focus on precursor materials necessary for producing lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) batteries. Morocco, as the second largest phosphate producer globally, with 70% of the world’s reserves, has attracted major companies like China’s CNGR Advanced Material and LG Chem, which plan to establish plants for the production of cathode materials. There are also joint ventures between South Korea’s LG Chem and China’s Huayou Cobalt for lithium refining. Notably, a Memorandum of Understanding (MOU) was signed with China’s Gotion to explore the development of a large-scale battery plant in Morocco, further cementing the country’s ambitions to play a crucial role in the battery value chain.
In contrast, South Africa, the continent’s most industrialised economy, has been slower to develop its own battery and EV value chains. The country does not yet produce any electric vehicles, although Toyota assembles a hybrid model. The South African government’s policy initiatives, such as the Electric Vehicles White Paper and a forthcoming Critical Minerals Strategy, remain in early stages. Despite this, South Africa is rich in critical battery minerals, such as manganese, holding about 80% of the world’s reserves. While the country has processing capabilities, much of the manganese mined is exported unprocessed, with only a fraction being processed domestically into alloys.
In addition to manganese, South Africa also has other battery-relevant minerals, including nickel, titanium, and copper. Processing of these minerals, however, is mostly directed towards established industrial uses rather than for emerging battery applications. South Africa’s aluminium sector, though dependent on imported bauxite, also plays a role in the supply of materials for EV batteries, particularly through semi-fabricators like Hulamin, which exports to the US market.
Small and medium-sized enterprises (SMEs) are starting to emerge in South Africa, focusing on assembling battery packs from imported cells. These firms primarily serve the local light industrial and commercial markets. Additionally, there are local initiatives such as Bushveld Energy’s work on vanadium redox flow batteries, which are suited for large-scale industrial applications. Though lagging behind, South Africa has the potential to leverage its mineral resources and industrial expertise to integrate more fully into the Southern African BMVC. This could involve facilitating battery mineral processing in neighbouring countries with rich deposits, such as Zambia and the Democratic Republic of Congo (DRC).
Zambia and the DRC, Africa’s top copper producers, together accounted for 14% of global copper production in 2023. Chinese mining firms dominate the sector in both countries, although Canadian and Swiss firms also have a presence. Efforts to further integrate these countries into the global EV supply chain include MOUs between the US, the DRC, and Zambia, aimed at jointly developing an EV battery supply chain. There are also plans to create a Trans-African Corridor, linking key mining regions in Zambia and the DRC to international shipping routes through Angola. This initiative aims to boost infrastructure for the processing of cobalt and copper, essential components in battery production.
Lithium is another critical mineral that is gaining traction across several African nations. Zimbabwe, for instance, has become the sixth largest producer globally following recent investments by Chinese firms. Although the Zimbabwean government has set ambitious goals for processing lithium into battery-grade materials, the reality has been more challenging, with projects still focused on exporting lithium concentrate. Other countries, including Namibia, Ghana, and Ethiopia, are also identifying and exploring their lithium deposits, with varying degrees of progress.
Cobalt production, vital for battery manufacturing, remains concentrated in the DRC, where Chinese firms dominate the mining sector. However, Madagascar, Morocco, and Zambia also have notable cobalt deposits, with significant foreign investment aimed at increasing production. Madagascar’s Ambatovy mine complex, for example, is a joint venture between Japanese and South Korean firms.
Graphite is another mineral where Africa plays a significant role, supplying a quarter of global demand. Madagascar is the second largest global producer, followed by Mozambique and Tanzania. In Madagascar, companies like Canada’s NextSource and the UK-listed Tirupati Graphite are leading production efforts, with Tirupati operating the Vatomina and Shamamy mines. Mozambique’s graphite sector is also expanding, with major operators like Australia’s Syrah Resources involved in significant mining projects. This region is poised to benefit from China’s restrictions on graphite exports, which are expected to increase demand for African-sourced materials.
One major challenge in assessing the progress of BMVC development across Africa is the uncertainty surrounding the implementation of various projects. Announcements of investments or MOUs do not always translate into operational facilities, as many face delays due to funding issues or shifts in corporate strategy. This makes it difficult to predict the long-term success of some of the ventures.
While BMVC integration on the continent remains in its early stages, countries like Morocco provide a blueprint for success. The challenges of regional integration and a reliance on foreign investment highlight the complexity of building a robust battery mineral value chain. However, with continued investment and strategic development, Africa holds the potential to become a key player in the global battery market.
Tirupati Graphite PLC (LON:TGR) is a fully integrated specialist graphite and graphene producer, with operations in Madagascar and India. The Company is delivering on this strategy by being fully integrated from mine to graphene. Its global multi-location operations include primary mining and processing in Madagascar, hi-tech graphite processing in India to produce specialty graphite, and a state-of-art graphene and technology R&D center to be established in India.
